motor insurance

There are some legal reasons and technicalities why your most recent car insurance claim may have been denied by your insurer. While it may seem unfair at first, claims being denied are a regular thing that happens daily in the car insurance industry. The good news is that some of the reasons are in your control and can be remedied, while some may be more of a legal matter. The following are all the reasons why you may be denied a claim on your car insurance and what to do about it. 

Claim Was Denied Due to Fraud 

Firstly, insurance fraud of any kind is illegal and should never be attempted as the chances of getting caught are far greater than the chances of getting away with it. It’s not uncommon for policyholders to try to scam their insurance providers into more money by intentionally causing damage or an accident. There are several insurance and legal consequences for a fraudulent claim. Your car insurance as a whole can be suspended by your provider, and you may be in store for fines and even jail time if the fraud is for a lot of money. 

Drinking And Driving Caused The Accident

Another serious illegal act is knowingly driving a vehicle while under the influence of alcohol. If it is found that alcohol was in your system at the time of the accident you filed the claim for, it will be immediately rejected, and you will be subject to the penalties. Your car insurance will absolutely cost more to maintain as you are now a high-risk driver and may even require specialized insurance as such –assuming your coverage isn’t suspended altogether. Like insurance fraud, drinking and driving is an entirely avoidable offense on your part. 

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Having no Valid Driver’s License on Hand

Another avoidable traffic offense is a driver with a license that isn’t valid or no license at all. Driving without certification is another way to instantly make a car insurance claim null and void because you shouldn’t even have been driving in the first place. Penalties for this include a spike in how much you pay for car insurance and fines. Carrying specialized car insurance afterward may not be necessary. If your driver’s license is ever expired or not valid, you should always have it renewed to stay entitled to all of your car insurance’s protection. 

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Expired Car Insurance Policy 

Inversely, your car insurance also has an expiration date –usually an annual one. During this time, you should immediately start the renewal process or look to other providers because you have that choice. With an expired car insurance policy, the company is no longer obligated to cover your damages. There are no real legal penalties for letting your car insurance expire. Problems, however, may arise if you attempt to drive without insurance regularly. Much like your driver’s license, you must stay on top of the validity of your car insurance at any given moment since renewals with it are more common than those with a license. 

Missed The Deadline to Notify Your Car Insurance 

After an accident or any other damage is done to an insured vehicle, the policyholder has a certain amount of time to inform the car insurance providers of the damage and begin the claims process. This isn’t a legal system but just how the business of insurance operates. The longer you put off your claims, then the more likely the car insurance company will be to reject them. There are no legal consequences for missing the opportunity to file an insurance claim, but you will run into financial ones as you must cover everything. 

Didn’t Notify Car Insurance Providers About Modifications 

You should always keep your insurance provider updated on what you add to your car, be it for aesthetic or utility. This helps them know what parts your car uses and its total value in the event it needs to be fixed or replaced. Casually mentioning something new on your car at the time of a claim is no way to do it, and your car insurance provider likely will not cover it. Again, no legal consequences here. It’s just all a matter of keeping your auto insurance provider informed. 

Violation of Terms in Your Car Insurance Policy 

Your car insurance policy only promises so much protection. For instance, you may not be entitled to your coverage when you are traveling or driving elsewhere. Sometimes it depends on your vehicle as it may not meet certain insurance requirements. These are the kind of specifics you should have worked out with your insurer beforehand. In this case, become familiar with your car insurance policy and ask an agent about anything you may not be aware of. It can guarantee you a successful claim.

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